Blockchain as a Governance Infrastructure for ESG Compliance in European Supply Chains

This paper examines how blockchain technologies are reshaping governance and transparency in European supply chains and assesses whether these changes can enhance ESG compliance under the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CSDDD). Drawing on a structured conceptual synthesis of academic literature, EU regulatory documents, and publicly documented industry cases, the paper argues that blockchain can support more data-driven, traceable, and auditable oversight by replacing fragmented documentation with continuous, tamper-resistant information flows. These capabilities are particularly relevant to the environmental and governance dimensions of ESG, as they can enhance emissions tracking, chain-of-custody verification, and audit-trail reliability. However, blockchain’s contribution remains uneven and depends on the governance of permissioned consortia, the quality of input data, interoperability challenges, and firms’ willingness to share information. Its contribution to social sustainability is more limited, as many labor-related risks are difficult to capture solely through digital records. The paper concludes that blockchain can serve as an enabling governance infrastructure for European ESG regulation, but not as a standalone solution. Its effectiveness depends on regulatory clarity, interoperable digital standards, and sustained collaboration across supply chain actors.